IDEAS home Printed from https://ideas.repec.org/a/ags/ijfaec/266482.html
   My bibliography  Save this article

Evaluating The Technical Efficiency Of Smallholder Vegetable Farms In Diverse Agroecological Regions Of Nepal

Author

Listed:
  • Shrestha, Rudra Bahadur
  • Huang, Wen- Chi
  • Pradhan, Upasana

Abstract

Enhancing the efficiency of vegetable farms is crucial to increase the vegetable outputs for meeting the demand for growing population. This study evaluated the technical efficiency and explored factors determining the efficiencies of smallholder vegetable farms in diversified agro-ecological regions using Stochastic Frontier Analysis (SFA) with cross-section data collected in 2013. The results revealed that average technical efficiency was found to be 0.77 and the variance parameters were highly significant indicating that the inefficiency existed in vegetable farms. The inefficiency gap could improve by operating the farms at the frontier level. The input variables consisting of land, labor, animal power, fertilizer, compost, pesticide, and capital were proved to be the important factors in determining the level of outputs. Meanwhile, the major sources of the inefficiencies identified were: age of farmer, training to the farmers, and infrastructure development. The efficiency in vegetable production can be improved by allocating input resources at the optimum levels, encouraging younger farmers in vegetable production, increasing training and extension activities, enhancing market access to the farmers, and developing infrastructures with regard to vegetable production.

Suggested Citation

  • Shrestha, Rudra Bahadur & Huang, Wen- Chi & Pradhan, Upasana, 2017. "Evaluating The Technical Efficiency Of Smallholder Vegetable Farms In Diverse Agroecological Regions Of Nepal," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(1), January.
    • Handle: RePEc:ags:ijfaec:266482
    DOI: 10.22004/ag.econ.266482
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/266482/files/Evaluating%20the%20Technical%20Efficiency%20of%20Smallholder%20Vegetable%20Farms%20in%20Diverse%20Agroecological%20Regions%20of%20Nepal.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/266482/files/Evaluating%20the%20Technical%20Efficiency%20of%20Smallholder%20Vegetable%20Farms%20in%20Diverse%20Agroecological%20Regions%20of%20Nepal.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.266482?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chandra S. Kumar & Calum G. Turvey & Jaclyn D. Kropp, 2013. "The Impact of Credit Constraints on Farm Households: Survey Results from India and China," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(3), pages 508-527.
    2. Loren Tauer, 1995. "Age and Farmer Productivity," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(1), pages 63-69.
    3. Dhungana, Basanta R. & Nuthall, Peter L. & Nartea, Gilbert V., 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 1-23.
    4. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    5. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    6. Stefanou, Spiro E. & Silva, Elvira, 2007. "AJAE Appendix: Dynamic Efficiency Measurement: Theory and Application," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(2), pages 1-19, May.
    7. Nisrane, Fantu & Berhane, Guush & Asrat, Sinafikeh & Getachew, Gerawork & Taffesse, Alemayehu Seyoum & Hoddinott, John F., 2011. "Sources of inefficiency and growth in agricultural output in subsistence agriculture: A stochastic frontier analysis," ESSP working papers 19, International Food Policy Research Institute (IFPRI).
    8. Thomas A. Garrett, 2001. "Economies of Scale and Inefficiency in County Extension Councils: A Case for Consolidation?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 811-825.
    9. Glynn T. Tonsor & Allen M. Featherstone, 2009. "Production Efficiency of Specialized Swine Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 493-510, September.
    10. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
    11. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    12. Ashok Parikh & Farman Ali & Mir Kalan Shah, 1995. "Measurement of Economic Efficiency in Pakistani Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 675-685.
    13. Lemeilleur, Sylvaine & Codron, Jean-Marie, 2011. "Marketing cooperative vs. commission agent: The Turkish dilemma on the modern fresh fruit and vegetable market," Food Policy, Elsevier, vol. 36(2), pages 272-279, April.
    14. Aurora Ferrari, 2007. "Access to Financial Services in Nepal," World Bank Publications - Books, The World Bank Group, number 6687.
    15. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
    16. Elvira Silva & Spiro E. Stefanou, 2007. "Dynamic Efficiency Measurement: Theory and Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 398-419.
    17. Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
    18. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    19. Sandra Brown & George Kennedy, 2005. "A case study of cash cropping in Nepal: Poverty alleviation or inequity?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(1), pages 105-116, March.
    20. Bernard, Tanguy & Spielman, David J., 2009. "Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia," Food Policy, Elsevier, vol. 34(1), pages 60-69, February.
    21. Johannes Sauer, 2006. "Economic Theory and Econometric Practice: Parametric Efficiency Analysis," Empirical Economics, Springer, vol. 31(4), pages 1061-1087, November.
    22. Bhatta, Kiran Prasad & Ishida, Akira & Taniguchi, Kenji & Sharma, Raksha, 2006. "Technical Efficiency of Rural Nepalese Farmers as Affected by Farm Family Education and Extension Services," MPRA Paper 40955, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rudra Bahadur SHRESTHA & Wen-Chi HUANG & Shriniwas GAUTAM & Thomas Gordon JOHNSON, 2016. "Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(4), pages 181-195.
    2. repec:aer:wpaper:172 is not listed on IDEAS
    3. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
    4. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    5. Nguyen To-The & Tuan Nguyen-Anh, 2021. "Impact of government intervention to maize efficiency at farmer’s level across time: a robust evidence in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2038-2061, February.
    6. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    7. Hayatullah Ahmadzai, 2017. "Crop Diversification and Technical Efficiency in Afghanistan: Stochastic Frontier Analysis," Discussion Papers 2017-04, University of Nottingham, CREDIT.
    8. Orkhan Guliyev & Aijun Liu & Gershom Endelani Mwalupaso & Jarkko Niemi, 2019. "The Determinants of Technical Efficiency of Hazelnut Production in Azerbaijan: An Analysis of the Role of NGOs," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    9. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    10. Karunarathna, Muditha & Wilson, Clevo, 2017. "Agricultural biodiversity and farm level technical efficiency: An empirical investigation," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 38-46.
    11. Zahidul Islam, K.M. & Sumelius, John & Bäckman, Stefan, 2012. "Do differences in technical efficiency explain the adoption rate of HYV rice? Evidence from Bangladesh," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-18.
    12. Aniah Dominic Avea & Jing Zhu & Xu Tian & Tomas Baležentis & Tianxiang Li & Michael Rickaille & William Funsani, 2016. "Do NGOs and Development Agencies Contribute to Sustainability of Smallholder Soybean Farmers in Northern Ghana—A Stochastic Production Frontier Approach," Sustainability, MDPI, vol. 8(5), pages 1-17, May.
    13. Khush Bukhat Zahid, 2023. "Household Market Participation, Access, and Farm Productivity in AJK: Evidence from Farm Household Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(3), pages 375-394.
    14. Djuraeva, Mukhayyo & Bobojonov, Ihtiyor & Kuhn, Lena & Glauben, Thomas, 2023. "The impact of agricultural extension type and form on technical efficiency under transition: An empirical assessment of wheat production in Uzbekistan," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 203-221.
    15. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    16. Tauer, Loren W. & Mishra, Ashok K., 2005. "U.S. Dairy Farm Cost Efficiency," Working Papers 127079, Cornell University, Department of Applied Economics and Management.
    17. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    18. Williams, Jonathan, 2004. "Determining management behaviour in European banking," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2427-2460, October.
    19. Edward Ebo ONUMAH & Bernhard BRÜMMER & Gabriele HÖRSTGEN-SCHWARK, 2010. "Productivity of the hired and family labour and determinants of technical inefficiency in Ghana's fish farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 79-88.
    20. Tom Kompas, 2001. "Catch, Efficiency and Management: A Stochastic Production Frontier Analysis of the Australian Northern Prawn Fishery," International and Development Economics Working Papers idec01-8, International and Development Economics.
    21. Adegbite, O. & Adeoye, I. B., 2015. "Technical Efficiency of Pineapple Production in Osun State, Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(1), pages 1-10, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:266482. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iiaaktr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.